When private equity ownership can affect your business, you have to make a decision.
Our whitepaper looks at how a strategy predicated on making a quick exit could negatively impact your business and your clients, including:
- What to likely expect when a PE firm acquires your broker/dealer
- How a PE firm’s quick profit strategies can disrupt the financial advisor’s business
- How a PE firm with significant debt can be vulnerable in changing market conditions and have limited cash flow for long-term investments
- The signs advisors can look for, questions to ask, and ways to protect their business
Should you stay to see what happens, or transition to a partner with a long and stable track-record?
Private equity (PE) firms typically invest with a goal to turn a short-term profit for their investors. This strategy may involve aggressive cost cutting to eliminate redundancies and create a leaner company in the near term, but may not provide for investment in the broker-dealer’s long-term goals in key areas like technology or service—leaving you and your broker-dealer partner potentially at odds.